MicroStrategy Offloads its Shares to Stash More Sats, Bitcoin Price Up 10%
- The Bitcoin market has gained popularity with institutional investors, due to its scarcity and global adoption.
- For a company like MicroStrategy, it is highly exposed to the Bitcoin market that the value of its shares is significantly down the past year.
- With Bitcoin price up approximately 10 percent today, MicroStrategy shares have gained around 20 percent in the past five days.
MicroStrategy Inc. (NASDAQ: MSTR) and Michael Saylor are laser-focused on the Bitcoin network. According to an SEC filing released on Friday, the company will sell some of its Class A shares for an aggregate sales proceeds of approximately $500 million. From the shares’ sales proceeds, the company has indicated that the cash is being directed to the Bitcoin network by purchasing more units of Bitcoin.
According to data provided by Coingecko, MicroStrategy leads public companies hodling with around 129,699 Btc. And now the data analytic company is showing its confidence in Bitcoin’s longevity.
Notably, around 174,374.4658 BTC worth approximately $3.7 billion is held by global traded public companies.
Bitcoin Flexes Muscles With Institutional Cash Inflow
The Bitcoin market has gained popularity with institutional investors, due to its scarcity and global adoption. For a company like MicroStrategy, it is highly exposed to the Bitcoin market that the value of its shares is significantly down the past year.
According to market data provided by MarketWatch, MSTR shares are down approximately 57 percent in the past year. However, with Bitcoin price up approximately 10 percent today, MicroStrategy shares have gained around 20 percent in the past five days.
The company has a market valuation of approximately $2.65 billion, although it has significant unrealized losses on its Bitcoin portfolio.
Reportedly, cash inflows into Bitcoin products and funds have hit a record $6.4 billion so far this year, data from digital asset manager CoinShares showed. Worth noting, that Bitcoin inflows totaled $95 million last week, representing the largest inflows of all digital assets.
Meanwhile, CoinShares indicated that the overall cryptocurrency products and funds posted inflows of $174 million.
Analysts are predicting that Bitcoin prices will spike shortly as the supply will be heavily exceeded by the demand.
Mikkel Morch, executive director at crypto and digital assets hedge fund ARK36, said, “As Bitcoin exchange balance is at a three-year low while long-term holder supply is at an all-time high, there are simply too few bitcoins available to keep up with the demand.”
Ethereum is the next digital asset that recorded major institutional cash inflow in the last few weeks according to CoinShares. The move on Ethereum is expected as the network comes closer to the Merge event, scheduled for less than a week.
At the time of publication, Bitcoin was exchanging hands at around $21,300, up approximately 10 percent in the past 24 hours. The leading cryptocurrency asset has a market capitalization of approximately $408 Billion.
The cryptocurrency market has seen increased interest from large institutional investors and small-scale businesses fueled by global goodwill on regulations.
MicroStrategy is betting on the long-term growth prospects of Bitcoin. The company is trying to convince other institutional investors to have their backing on Bitcoin.